Britain was the only major car market in the European Union to expand this year, adding to signs that the UK economy could be recovering despite the ongoing eurozone crisis.

New car sales in the UK rose by 11% in the 12 months to November, compared with a 10% slump in European sales.

Robert Forrester, chief executive of Vertu Motors, which has 90 dealerships across the UK, said European manufacturers were sending more cars to the UK, as consumers on the continent cut back on big purchases. "The European car market is clearly in severe distress with most European countries seeing significant falls in consumer demand."

He said manufacturers producing too many cars to meet demand have looked to the UK to offload them. "One of the few outlets for that capacity is the UK where the consumer is more robust."

While the economy still looks bleak in Britain, he said, UK consumers were feeling better than they were 12 months ago. "It would appear we are getting back to normality," he said.

European manufacturers have also been reacting to moves in the foreign exchange markets. As sterling rises against the euro, it proves more profitable to export cars to the UK.

The European Automobile Manufacturers' Association, the ACEA, said Britain saw almost 150,000 new car registrations in November, taking the yearly rise in new car registrations into double figures. The Society of Motor Manufacturers and Traders (SMMT) estimates there will be more than 2m car sales this year for the first time since the financial crisis of 2008.

David Bailey at Coventry Business School said sales have been driven by discounting and attractive offers of credit. "There's been some very good deals and good financial packages to be had. It doesn't mean the carmakers are necessarily making much money out of it."

The data echoed figures out on Thursday showing UK car production rose 4.9% in November and was 9.2% up over the year to date. More than 70% of cars produced in the UK are exported and 55% go to countries outside the eurozone. Bailey said the premium producers in the UK, in particular, have enjoyed huge success in overseas markets.

Paul Everitt, chief executive of the SMMT, said: "UK car manufacturing has gone from strength to strength in 2012. The global appeal of UK-built products is a key factor in the strength of our manufacturing sector, supported by world-leading productivity and a dedicated and flexible workforce."

European car sales, on the other hand, dropped for the 14th consecutive month, leading to the market's first double-digit contraction in more than two years, according to the figures from the ACEA. Greece was the worst hit, with sales down 47%, but even Germany suffered a decline of 3.5% over the year, suggesting troubles in peripheral countries are spreading to the core.

France also saw a sharp decline, with new car registrations down by almost 20% over the past year. Its car manufacturers have been badly hit by weakening demand at home and in neighbouring markets in Germany and eastern Europe. Paris-based PSA Peugeot Citroën – which saw sales drop by 16% in the region – is scrapping more than 10,000 jobs and one car plant to stem losses.

One bright spot in the eurozone was Ireland, which saw car sales pick up by 13.5% over the year, although it is a small market, with just 883 new car sales in November. Economic data from Ireland – which is undergoing a bailout programme – is consistently outstripping other eurozone countries, as it emerges from a deep slump triggered by the financial crisis.